EXCLUSIVE-Apple TV sets sights on EPIX movie service

April 27, 2012|Reuters

By Ronald Grover and Lisa Richwine

LOS ANGELES, April 27 (Reuters) - Apple Inc begantalks earlier this year to stream films owned by EPIX, which isbacked by three major movie studios, on devices including along-anticipated TV, according to two people with knowledge ofthe negotiations.

Apple, which now sells a $99 set-top box that hooks up to atelevision set and lets users stream online content from Netflix and the MLB channel, opened discussions withthree-year-old EPIX, created by Lions Gate Entertainment Corp, MGM and Viacom's Paramount Pictures.

One of the sources told Reuters that any discussions wouldapply to its set-top box and also to upcoming devices thatstream content. Apple is widely expected to unveil afull-fledged TV product later this year or in early 2013 todrive its next phase of growth and potentially revolutionize theindustry.

Apple has been stymied for much of the past year in securingmarquee Hollywood content. Talks with EPIX are in thepreliminary stages and no agreement is considered near, thesource said.

The talks could be complicated by EPIX's 2010 agreement withNetflix, which pays $200 million a year for the rights to streammovies to its 23.4 million U.S. clients. That deal gives Netflixexclusive streaming rights to EPIX movies through September -before Apple is expected to trot out its planned TV set.

Apple declined to comment on what it called "speculation." ANetflix spokesman had no immediate comment. An EPIX spokesmanhad no comment.